FINAL EXAMINATION

PROGRAMME Master of Business Administration (General)

Postgraduate Diploma in Business Management

MODULE Strategic Marketing Management

YEAR One (1)

INTAKE July 2018

DATE 13 November 2018

TIME 14h00 – 17h00

DURATION 3 hours

TOTAL MARKS 100

INSTRUCTIONS TO THE CANDIDATE

1. Questions must be attempted in the answer book provided.

2. All queries should be directed to the invigilator; do not communicate or attempt to communicate with any
other candidate.
3. You have THREE HOURS to complete this paper. You are not allowed to leave the examination room within
the first hour and in the last 15 minutes of this examination.
4. This is a CLOSED BOOK examination.
5. Read ALL instructions carefully.

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Read the article below and answer ANY FOUR (4) questions.

From chicken to art to design: the evolution of Nandos

As Nandos announces a new focus and investment in South African design for its restaurants globally, The Drum
caught up with co-founder Robbie Brozin who explained why he wants South Africa to “own the soul of the brand” once
more. With more than 1000 outlets in 23 countries as diverse as Namibia and Bangladesh, fast food chain Nandos has
changed dramatically from its humble beginnings in 1987 as cafe Chickenland in Johannesburg.

Co-founders Robbie Brozin and Fernando Duante borrowed money from family and friends to buy the standalone café
and rebranded it Nandos before opening a second restaurant in Johannesburg. The brand slowly grew to its standing
today and while the core focus, naturally, is about the chicken, Nandos is now turning the spotlight on South African
design as it embarks on a new journey to furnish its restaurants globally with hand-made products, building on Nandos
love for investing in art work on its walls.

Speaking to The Drum at the Design Indaba Festival in Cape Town, for which The Drum is media partner, Brozin said
the new investment comes as he wants South Africa to “own the soul of the brand” once more.

"For me every brand needs a soul and [although] our brand’s heritage is in Mozambique, the first restaurant was in
South Africa and from here it went global. It's actually very easy to lose your heritage as the business gets bigger and
you can lose a sense of purpose.”

"For me any business needs a strong sense of purpose, and it would be so sad if we had a business that was
successful but never had a purpose, and that purpose is really the soul of Africa to a certain extent."

Brozin said that as the brand took off, South Africa became irrelevant in the Nandos world which he described as "the
saddest thing that we could do".

Owning the soul of the brand, rather than the brand itself frees up Nandos franchise's to stamp a local flavour on their
stores. That said Brozin is keen to keep certain aspects as a standard and has a list of ‘Ten Don’t Fuck Withs’, which
includes the logo and its ethos as a “people-centric” business.

For the new Heartfelt Celebration of South African Design project, Nandos, which has made a "significant" investment,
will initially present a small collection of curated items, such as tables and chairs, made by 12 South African designers
with a view to slowly filtering those products to Nandos restaurants around the globe.

This year the brand will open 100 new stores and Brozin said he wants 5 per cent of those to bring in South African
furniture to trumpet the country’s design prowess on a global stage, an opportunity most South African designers would
not have the chance to do.

"Doing a project like this where you’re coming back to the roots of the brand working with African designers, you're
giving them a great platform to grow their own portfolio on an international basis. Most South African designers won't
have that opportunity of ever displaying in London or being [seen] internationally.

The idea is not to use South African furniture as standard due to the small size of the businesses Nando's is working
with, but to instead collaborate with local artists and designers in each market to offer a fusion of work.

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Nandos has a strong connection with creativity stretching back over the last 12 years to when it first put art on the walls
of its restaurants. Since then, said Brozin, art has moved “from an expense that you’ve got in the restaurant to an asset”
which he claimed “helps the grillers to grill magnificent chicken”.

A global art fair in London is in the works, revealed Brozin, which will see Nandos display a selection of its best designs
to promote South African art as a whole. There could also be the opportunity to put some of the new furniture on display
simultaneously, he added.

So is the aim of the project to change perception of the Nandos brand? "No," said Brozin, "I thinks it’s going to enhance
the perception. We have to be evolving as a brand and we’ve got to understand some of the local pressures that are
happening around the world, particularly youth unemployment and getting start-ups going.

"Nando’s is seen as a very entrepreneurial company and there’s nothing better than collaborating with start-ups in a way
that suits our business as well. Its shared common value; it has to be good for us and good for the people we're working
with or its not sustainable."

According to Brozin design was the key driver of Nandos success in London, rather than the marketing and advertising
push that is seen elsewhere around the globe. Indeed, the company has spent more money on designing restaurants in
the UK than any other country.

“The brand in London was really done through store design… we positioned it in London in the same kind of positioning
relative to the South African market but more sit-down and slightly more up market,” he said.

On the advertising side Nandos is currently looking to create TV spots that retain the look and feel of the brand, such as
it's irreverence and personality, but include local nuances to appeal to the particular audience. “They’ve got to be really
local so that only the locals can understand it,” Brozin commented. “We’re trying that now, and it’s quite cool because
you’ve got to find that local vein in each market.”

As part of the ongoing celebration of art at Nandos the brand has launched the Hot New Designer competition in South
Africa and has tasked the country’s under 35 creatives (both amateur and professional) to create a pendant light
fitting which will then be displayed in 100 restaurants globally.
Source: http://www.thedrum.com/news/2015/02/26/chicken-art-design-evolution-nando-s

QUESTION 1 (25 Marks)

1.1 Robbie Brozin indicated the redesign was that he wants South Africa to “own the soul of the brand”.

With reference to the above statement assess what he meant by this and explain how Nandos achieves this
and the resulting marketing implications it has on the brand. (15 marks)

1.2 “The brand in London was really done through store design… we positioned it in London in the same kind of
positioning relative to the South African market but more sit-down and slightly more up market,” he said.

Evaluate this statement with reference to the above information and discuss the importance of store design in
the success of the business. (10 marks)

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QUESTION 2 (25 Marks)

Evaluate the global market entry strategy that Nandos adopts and how it can use Ma’s four C’s model to ensure global
competitive advantage.

QUESTION 3 (25 Marks)

Assess the marketing communication strategy Nandos employed in London and in keeping with their line of thinking,
recommend further marketing commination tools that could be used to increase brand awareness.

QUESTION 4 (25 Marks)

Based on the article, briefly highlight how Nandos wishes to be perceived in the minds of the consumer and advise
Robbie Brozin on the various differentiation strategies it could implement.

QUESTION 5 (25 Marks)

Robbie Brozin asserts that he hopes to open 100 stores. Recommend key strategies to Robbie Brozin on targeting
lowest income consumers in Nigeria.

END OF PAPER

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